MINUTES OF MEETING
STATE EMPLOYEES RETIREMENT COMMISSION
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106

August 18, 2011

TRUSTEES PRESENT

Peter Blum, Chair
Charles Casella
Claude Poulin
Michael Carey
Linda Yelmini
Sal Luciano
Bob Coffey
Richard Cosgrove
Ronald McLellan
Thomas Culley
Bob Baus
Paul Fortier
Fae Brown-Brewton
State Treasurer Denise Nappier - Ex Officio
Deputy Comptroller Martha Carlson for State Comptroller Kevin Lembo - Ex Officio

TRUSTEES ABSENT

Steve Greatorex
James Dzurenda

MUNICIPAL LIAISON

Thomas Landry

OTHERS PRESENT

Deputy State Treasurer Jonathan Harris
Christine Shaw, Treasury
LeeAnn Palladino, Treasury
Brenda Halpin, State Comptrollers
Helen Kemp, Asst. Director, and Division Attorney, Retirement Services
Natalie Braswell, Attorney to the State Comptroller
Jeanne Kopek, Director, Retirement Services
Peggy Gray, Exec. Asst., Retirement Services

GUESTS
George Spurlock, CEIU

CALL TO ORDER

The Chairman called the meeting to order at 9:17 AM

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

Following the close of the August 2011 retirement payroll, the current backlog of unfinalized retirement records is approximately 12,246. The Division processed 213 new retirees to the payroll, 196 normal and 17 disabilities. Finalizations for the month were 59.

Pending disability applications as of July 31, 2011 are as follows: there are 73 applications pending Division review, 282 applications are waiting for further documentation and 164 are scheduled for upcoming Medical Examining Board (MEB) meetings. The total of pending disability applications is 522.

For the month of July 2011, 22 disability applications were received, 24 applications were put on the agenda and 10 applications were approved by the MEB. At the present time we are reviewing August 2011 cases. The next available meeting for scheduling cases is March 2012.

With new MEB members coming on board, we are attempting to schedule a meeting for the members to elect a Chairman and Secretary of the MEB.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE JULY 21, 2011 AMENDED MINUTES. Mr. Luciano moved, seconded by Mr. Culley to approve the July 21, 2011 minutes as amended. All voted in favor

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN'S PER DIEM EXPENSES Mr. Luciano moved, seconded by Mr. Cosgrove to approve the State Employees Retirement Commission Chairman's Per Diem Expenses. All voted in favor

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF JULY 2011. Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Service Retirements for the month of July 2011. All voted in favor

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF JULY 2011. Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Voluntary Pending Disability Retirements for the month of July 2011. All voted in favor

Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF JULY 2011. Mr. Luciano moved, seconded by Mr. Poulin to approve the Retirement System Disability Retirements for the month of July 2011. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF JULY 2011. Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Retroactive Retirements for the month of July 2011. All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM PRE RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF JULY 2011. Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Pre Retirement Death Benefit Retirements for the month of July 2011. All voted in Favor

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR JULY 2011. Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut Probate Judges and Employees Retirement System Service Retirements for July 2011. All voted in favor

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM RETIREMENTS FOR JULY 2011. Mr. Luciano moved, seconded by Mr. Poulin to approve the Judges, Family Support Magistrates and Compensations Commissioners Retirement System Retirements for July 2011. All voted in favor

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM RETIREMENTS. Mr. Luciano moved, seconded by Mr. Poulin to approve the Municipal Employees Retirement System Retirements. All voted in favor

Unanimous Decision

11. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS. Mr. Luciano moved, seconded by Mr. Cosgrove to approve the State Employees Retirement Commission Management Trustee's Per Diem and Travel Expenses Reimbursements. All voted in favor. Mr. Baus abstained

Majority Decision

12. REQUST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS. Mr. Luciano moved, seconded by Mr. Baus to approve the State Employees Retirement Commission Union Trustee's Per Diem and Travel Expenses Reimbursements. Mr. Poulin abstained

Majority Decision

13. REQUEST COMMISSION ADOPTION OF POLICY FOR RETROACTIVE APPLICATION OF C.G.S. 7-432 AND 7-438 (PERMITTING INDIVIDUALS WHO WORK LESS THAN TWENTY HOURS PER WEEK TO ALSO QUALIFY FOR A MERS PENSION) TO PENDING MATTERS.

The legislature recently amended C.G.S. 7-432 and 7-438 to allow MERS retirees who work less than twenty hours a week to be able to continue to do so without loss of pension benefit. There was one pending case where a MERS retiree was discovered to have a benefit overpayment because he had worked less than twenty hours per week. In light of the new legislation which by its own language was to apply retroactively to January 1, 2000, the Commission discussed a policy whereby repayment of the overpayments was waived in these pending cases due to the retroactive nature of the legislation.

Mr. Luciano moved, seconded by Ms. Brown-Breton to approve such a policy and to apply it to pending claims. Mr. Casella voted NO. Mr. Carey, Ms. Yelmini, Mr. Luciano, Mr. Poulin, Mr. Coffey, Mr. McLellan, Mr. Culley, Mr. Baus, Mr. Fortier, Ms. Brown-Brewton voted YES.

Majority Decision

14. REQUEST COMMISSION ADOPTION OF CERTIFIED COURT ORDER AS EXCEPTION FOR SPOUSAL CONSENT WAIVER. Mr. Luciano moved, seconded by Ms. Brown-Brewton to table to the September Commission meeting. All voted in favor

Unanimous Decision

15. REPORT ON STATUS OF REQUEST TO INTERNAL REVENUE SERVICE WITH REGARD TO A PRIVATE LETTER RULING FOR THE PURPOSE OF IMPLEMENTING THE SEPTEMBER 28, 2010 SEBAC PENSION GRIEVANCE AWARD

Division Counsel reported to the Commission that private outside counsel had sent the request for a private letter ruling to the Internal Revenue Service. Private counsel will keep the Commission informed as to its status.

16.REPORT ON SUBCOMMITTEE STATUS/ACTION WITH REGARD TO THE RFP TO OBTAIN OUTSIDE LEGAL COUNSEL FOR ADVICE ON PLAN ADMINISTRATION AND QUALIFICATION UNDER IRC SECTION 401 (a) AND SUBSEQUENT ACTION THAT MAY BE REQUIRED BY THE COMMISSION AND/OR OSC WITH REGARD TO THE SECTION 415 ISSUE

At approximately 9:18 a.m. Mr. Luciano moved to go into executive session to discuss Items #16 through #19 and to allow Acting Division Director and Division Counsel to stay; second by Ms. Yelmini. Ms. Nappier requested that her three staff members, Mr. Harris and Ms. Shaw and Ms. Palladino be allowed to stay for Executive Session. Ms. Carlson requested that Ms. Braswell be also allowed to stay for the Executive session.

After a brief discussion, Mr. Casella moved, seconded by Ms. Yelmini to allow Ms. Halpin, Mr. Harris, Ms. Shaw, Ms. Palladino and Ms. Braswell to stay for the Executive Session for discussion on Item #16 concerning the RFP for Section 415.

Unanimous Decision

At 10:15 a.m. Mr. Casella moved, seconded by Ms. Yelmini to come out of ExecutiveSession. All voted in favor.
Unanimous Decision There was no motion made.

At that time Ms. Halpin, Mr. Harris, Ms. Shaw, Ms. Palladino and Ms. Braswell left the meeting.

17. REPORT ON SUBCOMMITTEE STATUS/ACTION WITH REGARD TO THE EXTENSION OF THE CONTRACT WITH THE LAW FIRM OF ROSE KALLOR: RATIFICATION OF EXTENSION MAY BE REQUIRED

At 10:38 a.m. Ms. Yelmini, seconded by Mr. Baus moved to go into Executive Session for the purpose of discussing Items #17, #18, and #19, with just Ms. Kemp and Ms. Kopek present. All voted in favor

Unanimous Decision

ADDENDUM TO THE AGENDA

18. DISCUSSION-SETTLEMENT/ SETTLEMENT ISSUES IN RE: HHB-CV11-6010800-S MICKEY V. STATE EMPLOYEES RETIREMENT COMMISSION

19. DISCUSSION-SETTLEMENT/SETTLEMENT ISSUES IN RE: MMX-CR11-0193898-T THE STATE OF CONNECTICUT V. GINA LAYMAN

At 11:00 a.m. Mr. Baus moved, seconded by Mr. McLellan to come out of Executive Session. All voted in favor

Unanimous Decision No Motions were made on Items 17, 18 and 19.

ADJOURNMENT Before the Commission adjourned Ms. Brewton-Brown expressed
thanks and appreciation to Jeanne Kopek who is stepping down as Director of the Retirement Services Division. All the Commission Trustees joined in the expression of thanks for a job well done.

On a motion from Ms. Brown-Brewton, seconded by Mr. Luciano, the meeting adjourned at 11:02 a.m.

_________________________ _______________________
Jeanne Kopek, Director Peter R. Blum, Chairman
Retirement Services Division

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